FSS Sanctions Samsung Life Insurance..."Reasons for Non-Payment of Insurance Claims and Unfair Contract Termination"

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[Asia Economy Reporter Park Jihwan] The Financial Supervisory Service (FSS) has decided to impose sanctions on Samsung Life Insurance for non-payment of insurance benefits and improper termination of insurance contracts.

According to the financial sector on the 12th, the FSS confirmed through its inspection of Samsung Life Insurance that there were cases of non-payment of insurance benefits, improper termination of insurance contracts, improper exemption from premium payments, delayed payment of insurance benefits, and violations of obligations to ensure the safety of electronic financial transactions. The FSS imposed a warning on the institution, a fine of 228 million KRW, a penalty of 149 million KRW, and salary reductions for nine executives and employees.

This sanction includes not only the non-payment of cancer hospitalization insurance benefits but also the sanctions related to Samsung Life Insurance that were separately handled in July last year.

Samsung Life Insurance was found to have improperly withheld cancer hospitalization insurance benefits for stays in nursing hospitals from January 2015 to June 2019. In insurance covering fractures caused by accidents, despite the attending physician’s opinion that the insured’s traumatic herniated disc was causally related to the accident, Samsung Life Insurance reduced the insurance benefits, revealing cases of underpayment across various insurance policies.

It was also revealed that Samsung Life Insurance improperly terminated insurance contracts from April 2015 to May 2019 in ways that differed from the terms stated in the insurance policy. The FSS judged that although the cases qualified for premium payment exemption under the insurance terms, the exemption was omitted, resulting in excessive premium collection. Additionally, the FSS decided on management caution measures, citing the need to strengthen the review and payment procedures for cancer hospitalization insurance benefits to protect consumers.

This content was produced with the assistance of AI translation services.